A. hidden actions
B. adverse selection
C. moral hazard
D. adverse selection
Correct Answer: hidden actions ✔
Last Updated: June 11, 2019
Related MCQs
- Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?
- Which of the following is not true about how people make decisions ?
- Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?
- Which of the following best demonstrates the problem of moral hazard ?
- Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?
- Nicole wants to avoid buying a car that is a lemon. She takes a car she would like to buy to her mechanic before she purchases it. This is known as ?
- Which of the following is a response to People’s inconsistent behavior over time ?
- Jamil’s friend dies of a sudden heart attack. Jamil rushes to his doctor for an expensive physical examination. This response demonstrates that ?
- In the ultimatum game, what split would be rational for both the person proposing the split and the person who must accept or reject the split ?
- Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome ?
- hich of the following is not a property required of a perfect voting system ?
- Refer to Figure 1 What percent of the population vote for A when the choice is between A and B ?
- A life insurance company forces Enzo to have a medical examination prior to selling him insurance ?
- Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?
- Which of the following is an example of a signal that is used to reveal private information ?
- Markus is a travelling salesman for an apparel company. In this employment relationship, Markus is the ?